Investment Hazards


In the past one decade, lakhs of gullible investors have lost crores of money, chasing rainbows ( IPOs, teak plantation, chit funds, etc.) sold to them by unscrupulous operators.

Some points to avoid the biggest pitfalls:

Control your greed
High return implies high risk. Ask questions : how can they offer such high rate of return?

Look at the track record
Good name in the industry, interest or dividend track record, promoter holding, intuitional holdings, credit ratings, bonus issue just before IPO, Big order news or big oil field found news, etc.,
Consistency in profitability
Good company should have been growing steadily with no inconsistent spurts in the profits.

The company should be regularly tax and dividend paying one
Any company that has paid out cash must have earned it

Look for credit rating
For company deposits and debentures , choose only companies which gave good ratings. Look for a government-vetted scheme or SEBI stamp.

Don’t get taken in by high incentives
Gifts or incentives that cost Rs100 or Rs 1000 could be the bait for lakhs.

Be wary of hard sell
Be wary of high promises, huge muli media advertisements disproportionate to project size, gifts, posh office, etc., Security sops like post dated cheques mean nothing when the idea is to defraud.
Avoid chain schemes
Remember history repeats

0 comments:

Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • www.investchips.com never collects any personal information of visitors.